Many objects including travel, events, products, services have a finite life with an abrupt ending associated with a complete or partial loss of value. Other objects approach this finite life behavior. All of these objects can be considered to be perishable. If these finite life objects are not sold prior to their death they go unused and are wasted. A seat on an airplane that has not been sold at departure goes unused and the potential revenue from its sale is lost. A seat at a concert that goes vacant has no value after the performance. There are a variety of business methods but none are optimally able to prevent this loss. Furthermore, many of these markets for perishable objects have established purchaser's of the objects, but because these customers' are price sensitive, more lucrative upgrades are lost as such customers will settle for more basic services. Using the airline flight as an example, seats in first class for that flight may be available and many existing coach or business class ticket holders for that flight would be willing to upgrade to a first class flight but for cost differential between the basic flight service and the upgraded flight service.
Consider the common business methods. The standard method places a price for an object. At that price it can be expected that a certain number of the objects will be sold in a period of time. If the objects are not selling well the price can be lowered and additional objects can be sold. Buyers who require the object will buy at the original offering price. Potential buyers who do not wish to pay the price will often delay their purchase hoping for a lower sale price. This delays selling, promotes price reductions and diminishes total revenue. In another common practice, a price is set and bargaining ensues between the buyer and seller until a price is reached that the buyer and seller agree upon and there is a sale; or when there is no meeting of the minds there is no sale. Haggling in this manner has to be repeated for each object. In an auction business method a number of buyers bid for the object; the highest bidder buys the object. Another common method is the use of an option, wherein the potential buyer pays to secure the right to buy an object at a future time. The holder of the option can be certain that he or she will be able to purchase the object so long as the option exists. This is because the seller is obligated not to sell the object in order to fulfill the obligation to deliver if the option is exercised. This method does not encourage sales and leaves the buyer with certainty that the object will be available.
In a variation of the auction method a price is set and then lowered until there is a bidder. If in any of these methods there is the additional constraint of a finite life to the object, then the seller is often ultimately forced to dramatically decrease the price in hope of a last minute sale or accept total loss.
Several patents are disclosed that illustrate different business methods involved in the sale of an object. For example, U.S. Pat. No. 6,606,603, issued on Aug. 12, 2003 to Josh Joseph et al., describes a method for ordering items using an electronic catalog. In the system a customer through an index has the advantage of examining a plurality of suppliers. There is no ability however to make an agreement in advance to buy perishable objects at a reduced cost.
U.S. Pat. No. 6,594,641, issued on Jul. 15, 2003 to Adam Southam, describes a computer facilitated selling system. In this system the buyer is aided in finding the source supplier of an object. The system allows the supplier to recognize their local retail distributor that was by-passed by the buyer and reward the retailer with a commission. It does not offer a new fundamental method of doing business.
U.S. Pat. No. 6,587,838, issued on Jul. 1, 2003 to Augustine Esposito et al., describes a method for conducting real time electronic commerce. This method is capable of connecting a buyer with many vendors. It offers no mechanism for aggregating a group of buyers interested in the sale of surplus perishable objects at a reduced cost.
U.S. Pat. No. 6,578,013, issued on Jun. 10, 2003 to Rose Davis et al., describes a method for communicating between supplier and customer devices. This system is used for the repeat buyer who has information stored with the supplier regarding the buyer and type of objects usually purchased. This is an aid in the purchasing process and could be used for perishables. It does not provide a mechanism for the buyer to make an advanced agreement to buy the object if the price is lowered.
U.S. Pat. No. 6,556,976, issued on Apr. 29, 2003 to Kevin Callen, describes a system for transacting e-commerce. The system includes a process for recognizing areas for cost reduction. There is no mechanism for handling acquisition uncertainty.
U.S. Pat. No. 6,553,346, issued on Apr. 22, 2003 to Jay Walker et al., describes a management system for packages of goods or services. The transaction involves a conditional purchase order in which there is an early agreement involving holding individual parts of the package for a set time. This business method does not address the needs of selling perishable objects with an established reduced cost associated with acquisition uncertainty.
U.S. Pat. No. 6,507,822 issued on Jan. 14, 2003 to Jay Walker et al., describes a method of managing the sale of a product over a period of time. It addresses the problem of recognizing the need to have a method of reducing an object's price the longer it remains unsold. This aids an essentially standard marketing procedure.
U.S. Pat. No. 6,473,744, issued on Oct. 29, 2002 to David Tuck et al., describes a method for trading electric energy. It permits the various buyers and sellers to have a view of what is being currently offered. This information enables purchasing. It does not address the problem of a seller who recognizes the possibility of future excess supply that could go unused. There is no mechanism for being able to reach an agreement with buyers for possible sale of this excess energy at a lower cost with acquisition uncertainty.
U.S. Pat. No. 6,466,919, issued on Oct. 15, 2002 to Jay Walker et al., describes a management system for aggregating purchase orders from a number of buyers and then determining best pricing. The purchase orders by the buyers have requirements placed on them in order to be effected. The system does not address the problem of perishables being sold at a lowered cost associated with acquisition uncertainty.
U.S. Pat. No. 6,418,415, issued on Jul. 9, 2002 to Jay Walker et al., describes a management system for aggregating purchase orders from a number of buyers. The purchase orders have requirements placed on them in order to be effected.
U.S. Pat. No. 6,345,090, issued on Feb. 5, 2002 to Jay Walker et al., describes a management system whereby calling parties can submit purchase orders to various long distance carriers in order to achieve low pricing. There are restrictions set up by the calling party and if they are met the calling party is committed to use the service. In this method the calling party does not know what the final price will be; it is essentially an aid to the standard process of getting the supplier with the lowest bid for the indicated service.
U.S. Pat. No. 6,269,343, issued on Jul. 31, 2001 to Matthew Pallakoff describes a system that allows sellers to communicate conditional offers to potential buyers. This allows a number of buyers to consider purchase and in this way form a group with increased volume. It is a form of demand-based pricing where prices go down with increased volume of purchase. There is not a reduction in price associated with acquisition uncertainty.
U.S. Pat. No. 6,240,396, issued on May 29, 2001 to Jay Walker et al., describes a system for a buyer to make a guaranteed offer to buy a ticket for a specific price to a plurality of sellers. Any seller can accept or reject the offer. This is a different marketing system from the acquisition uncertainty method in which the buyer agrees to purchase the ticket at a specific reduced price if the supplier makes the ticket available at a designated time near the time of the event; remaining tickets can be sold in this way and are not wasted.
U.S. Pat. No. 6,202,051, issued on Mar. 13, 2001 to Thomas Woolston, describes an auction business method on the Internet. This is an automated mechanism enabling the auction business method. It differs from the acquisition uncertainty method in which the object is specific and the reduced price is associated with the uncertainty the object will be purchasable.
U.S. Pat. No. 5,897,620 issued on Apr. 27, 1999 to Jay Walker et al., describes a method for the sale of an unspecified-time airline ticket representing a purchased seat on a flight to be selected later for a specified itinerary. In this business method there is not a specific ticket being purchased. The buyer knows the day but not how the transportation will occur until near flight time. The cost may or may not be what can be achieved from a system in which excess seating is found to exist. The acquisition uncertainty method is different.
U.S. Pat. No. 5,873,069, issued on Feb. 16, 1999 to Douglas Reuhl et al., describes a system for keeping track of prices on many items, in many stores and markets. The system does not address the problem of what the pricing should be when dealing with perishable goods that can go to waste.
U.S. Pat. No. 5,845,265, issued on Dec. 1, 1998 to Thomas Woolston, describes a method and apparatus for creating a computerized market for used and collectible goods. This is an old market system that is dramatically expanded using new technology. It allows visibility of multiple products to a plurality of customers. It is a different marketing that serves a different need.
U.S. Pat. No. 5,757,917, issued on May 26, 1998 to Marshall Rose et al., describes a computerized system for the payment of the purchase of goods and services. This system can be used by a variety of business methods but in itself is not a method of doing business.
U.S. Pat. No. 5,797,127, issued on Aug. 18, 1998 to Jay Walker et al., describes a system that can be used for using options to purchase airline tickets. One purchases an option to by a specific airline ticket at a specific price, if the option is exercised the ticket price is paid in addition to the price of the option. The benefit to the buyer is that if the trip is not needed only the price of the option is lost.
U.S. Pat. No. 5,404,291, issued on Apr. 4, 1995 to Gordon Kerr et al., describes a process used to maintain inventory control in a hotel reservation system. This type of inventory information can be used in many business situations. It does not provide a method for the hotel and customer to enter an early agreement on a discounted price for either a room or a room upgrade depending on future availability. In the acquisition uncertainty business method the discounted price is awarded at an agreed upon future time if there is availability.
Several Non-United States Patents are reviewed that illustrate different business methods involved in the sale of an object. For example, Requested Patent JP2001014409 issued Jan. 3, 2001 to Akira Kagami et al., describes a system by which knowledge of the ownership of a purchased ticket can be followed even when the ticket is transferred to another person. The system does not assist the method by which tickets are sold or their price. It identifies ownership of a ticket at any specific time.
Requested Patent JP2002074108 issued on Mar. 15, 2002 to Masahide Tsuboi describes a system used in selling a variety of merchandise. The system incorporates a price algorithm based on many factors, which determines the price at any moment. The user then decides to buy or not to buy based on that price. This is a standard market method of purchase with the significant exception that price is continually changing. Everyone will pay a different price. The system requires long periods of attention. It alters the normal sale of items at an established reasonable price.
Requested Patent JP2002117266 issued on Apr. 19, 2002 to Katsunori Tsuji et al., describes a system which maintains information regarding air tickets issued in order to help in making additional reservations. The system is designed to help end users including travel agents make reservations. The information can be accessed by appropriate individuals using a prescribed network.
Requested Patent JP2003150740 issued on May 15, 2003 to Jiro Onoyama describes selling tickets to a performance over a network using information about the performance stored in a data base and purchase by the choice of an auction or by a lottery program. It does not make use of an agreement to purchase in advance at a reduced price if available. It therefore differs from the acquisition uncertainty method.
None of the above patents and the inventions they represent taken by themselves or as a group describe this invention as claimed. Thus the acquisition uncertainty business method and the system that enables it is an invention that will enable perishable object commerce.